VIJAY SADWAL,FARIDABAD HARYANA vs. ITO,WARD-2(5), FARIDABAD
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2017-18, arises against the CIT(A)/NFAC, Delhi’s DIN & order No.
ITBA/NFAC/S/250/2023-24/1057002255(1) dated
12.10.2023, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short
“the Act”).
Heard both the parties at length. Case file perused.
It emerges at the outset that both the learned lower authorities have added the assessee’s cash deposits made during demonetization amounting to Rs.28,50,000/-, as unexplained u/s 69A r.w.s. 115BBE of the Act.
Learned departmental representative vehemently argues that the impugned addition has been rightly made in the Vijay Sadwal
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assessee’s hands as he failed to explain source of his cash deposits forming subject matter of adjudication in the instant file. He could hardly dispute the clinching fact that the assessee’s stand from the very beginning attributes the source of the said deposits to cash withdrawal of Rs.17,00,000/- on 05.11.2016 and Rs.11,50,000/- on 08.11.2016; respectively.
That being the case, the only inference which arises herein that the impugned cash deposits are infact the assessee’s cash withdrawals only although the same have not been satisfactorily proved by filing the corresponding cash flow statement. It is thus deemed appropriate in the larger interest of justice that a lump sum addition of Rs.1,00,000/- only in the given facts would be just and proper with a rider that the same shall not be as a precedent. The assessee gets relief of Rs.27,50,000/- in other words.
It is further made clear before parting that the learned lower authorities’ action assessing the assessee u/s 115BBE is concerned, hon’ble Madras high court in SMILE Microfinance Ltd. Vs. ACIT, W.P. (MD) No. 2078 of 2020 & 1742 of 2020 dated 19.11.2024 (Mad.) has already settled the issue against the department that the law applies to the transaction on or Vijay Sadwal
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after 01.04.2017 only. Necessary computation shall follow as per law.
6. This assessee’s appeal is partly allowed.
Order Pronounced in the Open Court on 07/01/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 07/01/2025
*Subodh Kumar, Sr. PS*